Passenger cars are getting further out of reach due to frequent price increases by the car assemblers. Since January 2022, automakers such as Toyota Indus Motor Company (IMC), Honda Atlas Cars (HCAR), Lucky Motor Corporation (LMC), and a few others have announced multiple price hikes for their respective locally assembled cars.
Engineering Development Board (EDB) has taken this into account and has issued a stern warning to all local car assemblers in Pakistan against the recent price hikes. According to an official document available with ProPakistani, the board has asked all local assemblers to provide their cost structures and justification for the recent hikes by May 7, 2022.
The document reads:
The government is extremely concerned and has taken a very serious view about the frequent price increases by local automobile manufacturers/assemblers. This situation is clearly unacceptable and the government may consider to initiate regulatory measures, which may include fixation of prices under the Price Control Prevention of Profiteering and Hoarding Act, 1977.
The board has also summoned a meeting regarding the matter on May 10, 2022, in which, it has requested the presence of the respective CEOs of nearly all local automotive groups including Toyota IMC, HCAR, LMC, Pak Suzuki Motor Company (PSMC), Al-Haj Automotive, United Motors, Regal Automobile Industries, Master Changan Motors, Hyundai Nishat Motors, and Sazgar Engineering Works.
Automakers’ Stance
Automakers are adamant that they have no choice but to increase the prices of their cars due to rising raw material costs, shipment costs, and devaluation of local currency.
They have also openly criticized the government’s plans to fix car prices, saying that Pakistan is a free market and that the automakers can regulate the prices of their products where they see fit.
Considering the polarity of the government’s and the automakers’ views, it is safe to say that crucial days are ahead for Pakistan’s automotive industry.
